Visa Views Stablecoin as Growth Opportunity — Market Talk

1745 ET - Visa sees a lot of opportunity in cryptocurrency. CEO Ryan McInerney says the credit-card company supports the Genius Act, which is legislation aimed at creating a regulatory framework for stablecoins. He believes stablecoins can be useful for people living in countries where the currency is volatile. It can also be used by consumers and businesses who want to send money across borders easily. Consumers and businesses are holding stablecoin as a hedge against inflation, but McInerney thinks they need more opportunities to use stablecoin to spend. Visa can act as a platform to meet that need, he says. (katherine.hamilton@wsj.com)

1604 ET - U.S. stocks slip from record levels as investors digest a bevy of earnings, deals and economic data. Union Pacific announces a $71.5 billion merger with Norfolk Southern bringing a single entity control of coast-to-coast rail shipments for the first time in U.S. history. Baker Hughes reaches a $13.6 billion deal for Chart Industries andPalo Alto Networks is in talks to acquire the Israeli cybersecurity provider CyberArk Software. Boeing falls 4.4% after narrowing its 2Q loss, UPS sinks 11% as earnings drop and Spotify slides 12% after swinging to a loss. Economists await GDP Wednesday, along with the Fed's rate decision. DJIA falls 204 points, or 0.5%, to 44632, the S&P 500 loses 0.3% to 6370 and the Nasdaq drops 0.4% to 21098. (patrick.sullivan@wsj.com)

1548 ET - The Bank of Canada is likely on hold for the rest of this year, and one reason is because senior policymakers are cognizant that the Mark Carney-led Liberal government will deliver substantial fiscal stimulus in a fall budget plan, says Oxford Economics lead Canada analyst, Tony Stillo. Stillo says the Liberal Party's recent election victory was based on a policy platform that envisaged robust spending on infrastructure projects and housing. Since April, PM Carney has pledged a sharp rise in defense spending, which Stillo estimates will total a net 1% of GDP. "There's quite a bit of stimulus" in the pipeline, Still says, adding though it won't come soon enough to avoid a recession. "That fiscal stimulus is something the Bank of Canada is aware of and also will keep monitoring." (Paul.Vieira@wsj.com, @paulviera)

1537 ET - Investors buy up Treasurys ahead of the Fed meeting, pushing yields lower. Wall Street is bracing for potential dissent in the expected decision to hold rates. Markets will also monitor Chair Powell's Q&A for signs that a rate cut could be next. Ahead of the meeting, ADP is expected to report the addition of 64,000 private-sector jobs in July, in a WSJ survey, after a 33,000 decrease in June. An initial estimate of 2Q GDP growth is forecast at 2.3% annual rate, following a 0.5% contraction in the 1Q. The 10-year declines 0.089 percentage point to 4.329% and the two-year falls 0.046 p.p. to 3.874%. (paulo.trevisani@wsj.com; @ptrevisani)

1503 ET - Oxford Economics' head Canada analyst, Tony Stillo, says he's not putting a lot of weight on sentiment indexes that suggest confidence among households and firms have recovered from tariff-fueled record lows. Stillo says Canada is now in a recession that could last through 2025. Stillo tells reporters at an Oxford-hosted briefing that confidence indicators tend to bounce around along a band, or standard line. "When confidence is low, bouncing along the bottom doesn't change actual spending behavior," Stillo says. He says sentiment gauges would need to show a "sustained and significant" improvement before Oxford reconsiders its Canada recession call. (paul.vieira@wsj.com; @paulviera)

1408 ET - PayPal shares are under pressure despite reporting strong 2Q figures, likely due in part to management's commentary on consumer spending, RBC Capital Markets analysts say in a research note. PayPal observed "a slight softening" in retail spending in the U.S., CFO and COO Jamie Miller said on a call with analysts. It was most apparent in areas that were likely impacted by tariffs, such as Asia-based market places with higher exposure to goods sourced from China, Miller said. That call out could temper enthusiasm from other parts of PayPal's 2Q report, the RBC analysts say. PayPal slides 8.3% to $71.72. (dean.seal@wsj.com)

1400 ET - Global ESG sukuk will likely surpass $60 billion outstanding by the end of 2026, Fitch Ratings says, reflecting its expanding role in funding sustainability initiatives, a diverse investor base, and ongoing regulatory reforms. Just over 40% of all emerging-market ESG U.S. dollar debt in the first half of this year, excluding China, was in sukuk format, with the rest in bonds, Fitch says. "We expect ESG sukuk issuance to moderate in 3Q25 due to seasonal summer trends in key markets, mirroring broader sukuk market patterns, before rebounding in 4Q25," Fitch adds. But, the agency says "geopolitical risks, evolving sharia requirements, oil price volatility, and greenwashing concerns could slow ESG sukuk issuance." (stephen.nakrosis@wsj.com)

1347 ET - Spending on artificial intelligence and rising energy demand will help keep U.S. corporate capital spending elevated through next year, Fitch Ratings says. Investments by hyperscalers and data center operators also contribute to the higher capex expectations, according to Fitch. Fitch says it raised capital expenditure assumptions for the utilities sector, adding it is the largest and fastest-growing sector in terms of capex. "In addition to investments to modernize the grid and support clean energy transitions, the power industry is adding generation capacity to meet growing energy demand from data centers," Fitch says. "Recent policy changes could further accelerate U.S. corporate investments, posing upside risk to our capex expectations," Fitch adds. (stephen.nakrosis@wsj.com)

1337 ET - Consumers' uncertainty about the economy is still on display in their spending habits, Procter & Gamble CFO Andre Schulten says on an analyst call. The company left a wide guidance range for the full year to account for scenarios in which this pull-back in spending continues, and in which consumers return to confident spending habits. Both low- and high-income consumers are slowing down their spending, with some using more promotions and others buying in bulk at wholesale clubs and online. "The volatility the consumer is seeing, I think, is maybe not necessarily grounded in their current reality, but more on what to expect for the future," Schulten says. (katherine.hamilton@wsj.com)

1331 ET - Procter & Gamble's planned restructuring is an effort to return to the top after falling behind competitors, CEO Jon Moeller says on an analyst call. "We simply must regain that level of superiority that allows us to outgrow the market," he says. "That's why we're going through the restructuring program that we are." Procter & Gamble announced back in June that it would reduce its non-manufacturing workforce by 15%, or 7,000 roles. (katherine.hamilton@wsj.com)

1310 ET - Whirlpool CEO Marc Bitzer says economic uncertainty has increasingly suppressed demand and led its customers to continue to trade down to lower-end appliances. "Weakened consumer confidence pushed mix down further in an environment that was already largely replacement driven," he says during a call with analysts. The company's discretionary demand, which tends to bring a stronger mix, has come under pressure in recent quarters amid falling existing home sales, he says. He expects such demand to eventually rebound as the housing market recovers, he says. Whirlpool sinks 11% after lowering profit guidance and cutting its dividend on disappointing quarterly results. (kelly.cloonan@wsj.com)

1302 ET - Sysco's fiscal 2026 guidance for $4.50 to $4.60 a share is a touch below the consensus estimate of analysts polled by FactSet, pressuring shares. But its midpoint of $4.55 a share is right in line with the consensus of BMO Capital Markets analysts, they say in a research note. It reflects some year-over-year growth of about 1% to 3% and is closer to the range of targets from buy-side analysts, they say. The outlook also appropriately accounts for headwinds from incentive bonuses that will hurt the bottom line and largely come into play during 3Q of the company's fiscal year ahead, the analysts say. Sysco slides 2.3% to $78.51. (dean.seal@wsj.com)